Significant progress has been made in closing out the previously disclosed problematic legacy contracts.
Five of the eight problematic public sector contracts have been settled, with one having been ceded to a sub-contractor with settlement currently in arbitration, another concluding at the end of April 2021 and one that has been terminated with handover discussions currently underway.
“We anticipate that all these contracts will be satisfactorily closed out by the end of the current financial year,” EOH said.
With respect to the overbilling uncovered in the ENSafrica investigation, EOH has settled with the Special Investigating Unit (SIU) on the Department of Defence contracts and has begun repayment. Furthermore, final negotiations with the SIU on the Department of Water and Sanitation contracts are underway and it is anticipated that settlement will take place in H2 2021. “This will bring to a conclusion the overbilling issues.”